Salary sacrifice policy template
Our salary sacrifice policy template outlines the guidelines and procedures for employees opting into salary sacrifice schemes, promoting transparency and compliance with relevant regulations.
- 2 pages / 483 words.
- Last updated 16/08/2023.
- Designed for United Kingdom use.
- Suitable for use in other territories; check local laws first.
- Instantly download as Word / PDF / plain text, or send by email.
- Includes 12 months’ access, with all updates to this page provided free of charge and notified to you.
Salary sacrifice policy
1 Overview
1.1 This Salary Sacrifice Policy outlines the terms and conditions governing the salary sacrifice programs offered by [Company] in accordance with UK regulations. The policy aims to provide eligible employees with the opportunity to allocate a portion of their pre-tax salary towards selected benefits, potentially reducing their taxable income and enhancing their overall remuneration package.
2 Scope
2.1 This policy applies to all employees who are eligible to participate in salary sacrifice programs. The policy covers various aspects of salary sacrifice arrangements, including benefits, eligibility, procedures, and compliance, specifically tailored to the UK context.
3 General Principles
3.1 Eligible Benefits
3.1.1 Eligible benefits for salary sacrifice programs may include, but are not limited to:
- Pension scheme contributions
- Cycle-to-work schemes
- Childcare vouchers or Tax-Free Childcare
- Additional annual leave purchase
- Health-related benefits, such as health insurance premiums
- Other benefits as approved by the Company and compliant with UK regulations
3.2 Eligibility
Employees who have
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This Salary sacrifice policy template aims to offer you a versatile and customisable tool, serving as a solid foundation for your needs. Utilise it to ensure consistency, enhance accuracy, and save valuable time.
Adapt it to suit your unique requirements, ensuring efficiency and effectiveness in your HR processes.
Send to appropriate internal recipients such as employees, workers, contractors etc. and request confirmation that is has been read and understood.
Issue during onboarding / after changes / planned refresher.
Frequently Asked Questions
Frequently Asked Questions
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Can I use this template in my small business?
Yes. The Salary sacrifice policy template is designed to be flexible and suitable for organisations of all sizes, including small businesses and charities. It follows UK employment law best practice, so even if you don't have an in-house HR team, you can confidently apply it.
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Is this template compliant with 2025 UK employment law?
Absolutely. All of our templates are drafted with the latest ACAS guidance and UK employment legislation in mind. We review and update them regularly, so you can be confident they remain compliant.
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Can I customise it for my organisation?
Yes, we highlight the areas that you need to update with your own details, and where you need to make decisions to suit your situation. This saves you time and ensures that you meet best practice.
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Do I get instant access?
Yes. Once purchased, you'll be able to download it instantly. Templates are provided in editable Word or Excel format so you can customise them easily, and in PDF format for easy sharing.
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What if I need more help, not just this template?
If you're looking for broader support, we also offer toolkits and library bundles that include this template, along with other HR templates and policies for fully managing your situation. These may be more cost-effective if you need deeper advice.
